{"id":14149,"date":"2024-10-25T15:08:44","date_gmt":"2024-10-25T05:08:44","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=14149"},"modified":"2024-10-25T15:08:51","modified_gmt":"2024-10-25T05:08:51","slug":"global-rubber-tackles-eudr-tyre-supply-chains-close-key-blindspot","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/global-rubber-tackles-eudr-tyre-supply-chains-close-key-blindspot\/","title":{"rendered":"Global Rubber Tackles EUDR: Tyre Supply Chains Close Key Blindspot"},"content":{"rendered":"\n<p>Rubber producers are turning to forest certification to &#8220;EUDR-proof&#8221; supply chains &#8211; a massive undertaking given that 6 million &#8220;smallholders&#8221; are responsible for farming rubber trees worldwide.<\/p>\n\n\n\n<p>It comes as more than dozens of rubber companies from across Vietnam, Cambodia, and Laos\u2014all under the Vietnam Rubber Group (VRG)\u2014are working with the Vietnam Academy of Forest Science &#8211; Vietnam&#8217;s PEFC scheme and PEFC Asia-Pacific to provide EUDR compliance training ahead of the rollout of Europe&#8217;s signature deforestation laws, which are set to come into effect in December 2025.<\/p>\n\n\n\n<p>As it stands, VRG has invested more than $78 billion to establish extensive rubber plantations across Southeast Asia\u2014more than 120,000 hectares of plantations in Vietnam and 90,000 hectares in Cambodia and Laos\u2014a figure that could grow to 142,000 hectares by the end of the year.<\/p>\n\n\n\n<p>&#8220;Because Cambodia and Lao have not yet developed their national certification system under the PEFC FM Benchmark, 120,000 hectares rubber plantation of VRG in these two countries could not achieve FM certification,&#8221; PEFC Asia-Pacific said. &#8220;However, with PEFC CoC and PEFC EUDR DDS module, they can comply\/align with EUDR requirements as soon as possible.&#8221;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">Why National Standards Matter in Southeast Asia<\/h6>\n\n\n\n<p>It comes after Wood Central last month reported that without national standards and governments mandating compliance with these standards, producers stand little chance of &#8220;closing loops in global supply chains&#8221; &#8211; with just 1.8% of rubber cultivated in Thailand meets FSC standards.<\/p>\n\n\n\n<p>The challenge facing the rubber industry is to reward smallholders who commit to forest certification and ensure the total supply chain for rubber products carries a chain of custody.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"5ebwN79EBAo\"><iframe loading=\"lazy\" title=\"Some of Thailand\u2019s rubber farmers strive to go green\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/5ebwN79EBAo?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><span style=\"background-color: rgba(0, 0, 0, 0.2);\">As the world&#8217;s largest producer of natural rubber, Thailand supplied almost 40 per<\/span><em> cent of global rubber stocks in 2021 &#8211; footage courtesy of @AFP.<\/em><\/figcaption><\/figure>\n\n\n\n<p>Instead, Wood Central understands that the low levels of certification result from a disagreement between global buyers and sellers (the farmers) about the quantity and price of rubber products.<\/p>\n\n\n\n<p>That is, according to an urgent letter sent by the Rubber Council of Thailand, which is pushing for a Thai government mandate that all rubber plantations (about 22 million Rai or 3.52 million hectares) meet Thailand&#8217;s standard for forest plantation management (TIS 14061).<\/p>\n\n\n\n<p>Now, the Rubber Council of Thailand wants &#8220;all rubber in the country to meet the standard within three years,&#8221; with the target to be funded by the Rubber Development Fund under the Rubber Authority of Thailand Act, B.E. 2558 (2015) and the Thai federal budget.<\/p>\n\n\n\n<p>The goal, it said, &#8220;is for every plantation in Thailand to meet TIS Standard 14061&#8221; under an accelerated timeframe, bringing forward compliance to align with the new EUDR requirements.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1024x683.jpg\" alt=\"The EU are in the process of introducing the world's strongest deforestation laws. As the third largest timber market in the world, behind China and the US, it will have major implications for global supply chains for forest products. (Image Credit: Getty Images)\" class=\"wp-image-14966\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1024x683.jpg 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-300x200.jpg 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-768x512.jpg 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1536x1024.jpg 1536w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-2048x1365.jpg 2048w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-696x464.jpg 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1068x712.jpg 1068w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1920x1280.jpg 1920w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-630x420.jpg 630w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-1320x880.jpg 1320w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/iStock-1417662385-fotor-20240219132557-600x400.jpg 600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The EU are in the process of introducing the world&#8217;s strongest deforestation laws. As the third largest timber market in the world, behind China and the US, it will have major implications for global supply chains for rubber products. (Image Credit: Getty Images)<\/figcaption><\/figure>\n\n\n\n<p>Thailand is one of the world&#8217;s largest rubber producers and exporters, with an export value of 40 billion USD in 2019 alone &#8211; and with more than 11.45% of exports entering EU markets, the stakes are enormous.<\/p>\n\n\n\n<p><a href=\"https:\/\/woodcentral.com.au\/worldwide-impact-eu-passes-law-banning-deforestation-products\/\">To meet the requirements of EUDR<\/a>, which will come into effect on December 30, 2025, rubber producers must confirm that all imported products &#8220;are not sourced from deforestation and have a traceable and verifiable Chain of Custody.&#8221;<\/p>\n\n\n\n<p>Because Thai rubber plantations are primarily small-scale, &#8220;it is more challenging for them to meet the international FSC standards compared to large, privately owned plantations.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"WiAnKh0hn20\"><iframe loading=\"lazy\" title=\"EUDR and rubber: How is the sector affected by the EU Deforestation Regulation?\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/WiAnKh0hn20?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Rubber, with its abundant number of smallholders, is one of the industries most impacted by the new EUDR &#8211; footage courtesy of<a href=\"https:\/\/www.youtube.com\/@LiveEO_space\"> @LiveEO_space.<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p>Already, a cooperative of 225 rubber smallholders managing more than 1000 hectares of rubber trees is using the <a href=\"https:\/\/pefc.org\/news\/pefc-stakeholders-join-forces-in-implementing-group-certification-in-thailand\">Thai national standard to sell PEFC-certified latex rubber into global markets<\/a> via Wang Sai Ltd &#8211; representing the first PEFC-certified latex order from Thailand.<\/p>\n\n\n\n<p>Instead, TIS 14061 &#8220;aims to improve and develop methods for rubber plantation that are consistent with the standards for sustainable economic wood plantation management,&#8221; which &#8220;meets international standards and are accepted by PEFC in international markets.&#8221;<\/p>\n\n\n\n<p>According to a source connected to the cooperative, this latest commitment &#8220;highlights the readiness of Thai smallholders to join the global sustainable latex supply chain,&#8221; with the achievement the result of a &#8220;long-term project known as the &#8220;Sustainable Rubber Plantation According to PEFC International Standard.&#8221;<\/p>\n\n\n\n<p>&#8220;Rubber grower cooperatives are a robust institutional platform for farmers in Thailand,&#8221; the source said, and &#8220;with more than 400 active cooperatives, rubber farmers join together to gather natural latex, harvest rubber timber, and transport it to factories.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"TALN6K6BNAY\"><iframe loading=\"lazy\" title=\"Webinar Recording: Get PEFC Certified - Learn from First Movers in the Rubber Sector\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/TALN6K6BNAY?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>PEFC International is now working with smallholders and buyers to close loops and get more farmers who cultivate rubber certified &#8211; footage courtesy of <a href=\"https:\/\/www.youtube.com\/@pefcinternational\">@pefcinternational.<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p>The market for natural rubber is enormous, with US-based Yulex LLC working with multinational brands, including Decathlon, Patagonia, and Wallien, to create deforestation-free supply chains.&nbsp;<\/p>\n\n\n\n<p>Yulex has proprietary technology and patents for natural rubber products, replacing equivalent petroleum-based products, which Wood Central understands could dramatically increase the number of PEFC-certified natural rubber products entering global supply chains.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"445\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-1024x445.png\" alt=\"image 45\" class=\"wp-image-14151\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-1024x445.png 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-300x130.png 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-768x334.png 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-1536x668.png 1536w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-2048x890.png 2048w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-696x303.png 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-1068x464.png 1068w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-1920x835.png 1920w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-966x420.png 966w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-1320x574.png 1320w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-45-600x261.png 600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Last year, a new study looked at the level of regional deforestation in areas where rubber is cultivated. The research looked at Rubber distribution in 2021 and associated deforestation. (Photo Credit: Nature)<\/figcaption><\/figure>\n\n\n\n<p>The push to certify natural rubber&nbsp;<a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/is-rubber-deforestation-a-risk-for-global-supply-chains-for-tyres\/\" rel=\"noreferrer noopener\">comes after a groundbreaking study published in October 2023 reported that deforestation for rubber cultivation was &#8220;substantially underestimated&#8221;<\/a>&nbsp;and could be three times higher than assumed.<\/p>\n\n\n\n<p>The report, which is pushing for greater focus by governments to look at natural rubber as &#8220;the primary driver of deforestation&#8221; in Southeast Asia, reported that the EU &#8220;was substantially exposed&#8221; leading up to the introduction of the EUDR.<\/p>\n\n\n\n<p>Over 90% of rubber cultivation occurs in Indonesia, Vietnam and Thailand, with more than 70% of rubber produced supplied to the auto industries.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-44.png\" alt=\"image 44\" class=\"wp-image-14150\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-44.png 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-44-300x200.png 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-44-768x512.png 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-44-696x464.png 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-44-630x420.png 630w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/01\/image-44-600x400.png 600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Last year, Formula 1 signed an agreement with Pirelli,&nbsp;which will see all tyres used on the grid using certified rubber that meets the requirements of forest certification. Here, Stefano Domenicali, CEO of Formula 1, and Mohammed bin Sulayem, President of FIA, are on the grid after the announcement in October 2023. (Photo Credit: Autosport.com)<br><\/figcaption><\/figure>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/all-formula-1-tyres-now-certified-by-pirelli-as-fia-targets-net-zero\/\" rel=\"noreferrer noopener\">Last year<\/a>, Wood Central reported that all Formula 1 cars will use &#8220;certified tyres&#8221; on the grid starting this year.<\/p>\n\n\n\n<p>In recent years, FSC and PEFC have both increased rubber plantation certification with new plantations established in Thailand, Indonesia, Sri Lanka and Guatemala, whilst certified rubber is increasing in Vietnam, China and Colombia.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For more information about the EUDR, <a href=\"https:\/\/woodcentral.com.au\/worldwide-impact-eu-passes-law-banning-deforestation-products\/\">please visit Wood Central&#8217;s special feature<\/a>. For more information about how PEFC and FSC can assist with EUDR compliance,<a href=\"https:\/\/pefc.org\/eudr\"> visit PEFC International&#8217;s and <\/a><a href=\"https:\/\/fsc.org\/en\/eudr-regulation-on-deforestation-free-products#:~:text=The%20EUDR%20aims%20to%20ensure%20that%20a%20set,no%20longer%20contribute%20to%20deforestation%20and%20forest%20degradation.\">FSC International&#8217;s dedicated webpages<\/a>.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Rubber producers are turning to forest certification to &#8220;EUDR-proof&#8221; supply chains &#8211; a massive undertaking given that 6 million &#8220;smallholders&#8221; are responsible for farming rubber trees worldwide. It comes as more than dozens of rubber companies from across Vietnam, Cambodia, and Laos\u2014all under the Vietnam Rubber Group (VRG)\u2014are working with the Vietnam Academy of Forest [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":15671,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[52,53,32,45,44],"tags":[],"ppma_author":[70],"class_list":{"0":"post-14149","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-asia","8":"category-europe","9":"category-global-news","10":"category-sustainability","11":"category-sustainable-forest-management"},"authors":[{"term_id":70,"user_id":2,"is_guest":0,"slug":"jason","display_name":"Jason Ross","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/14149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=14149"}],"version-history":[{"count":6,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/14149\/revisions"}],"predecessor-version":[{"id":21649,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/14149\/revisions\/21649"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/15671"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=14149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=14149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=14149"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=14149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}